VerifyMe (VRME) 10-Q 14 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Aug. 09, 2019
Lease Agreement Term
Entity Registrant Name	VerifyMe, Inc.
Entity Central Index Key	0001104038
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Reporting Status Current	Yes
Entity File Number	000-31927
Entity Interactive Data Current	Yes
Entity Incorporation, State or Country Code	NY
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		109,955,166
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2019

Balance Sheets (Unaudited)

Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
CURRENT ASSETS
Cash and cash equivalents	$ 585,193	$ 1,673,201
Accounts Receivable	22,024	30,373
Deposits on Equipment	163,090
Prepaid expenses and other current assets	29,981	25,781
Inventory	43,266	41,982
TOTAL CURRENT ASSETS	843,554	1,771,337
INTANGIBLE ASSETS
Patents and Trademarks, net of accumulated amortization of $269,929 and $258,294 as of June 30, 2019 and December 31, 2018	225,988	209,049
Capitalized Software Costs	116,427	70,231
TOTAL ASSETS	1,185,969	2,050,617
CURRENT LIABILITIES
Accounts payable and other accrued expenses	351,722	411,211
Accrued Payroll	93,836	69,041
TOTAL CURRENT LIABILITIES	445,558	480,252
STOCKHOLDERS' EQUITY
Common stock of $.001 par value; 675,000,000 authorized; 109,672,373 and 102,553,706 issued, 109,321,833 and 102,203,166 shares outstanding as of June 30, 2019 and December 31, 2018	109,322	102,203
Additional paid in capital	61,186,990	60,844,796
Treasury stock as cost (350,540 shares at June 30, 2019 and December 31, 2018)	(113,389)	(113,389)
Accumulated deficit	(60,442,512)	(59,263,550)
STOCKHOLDERS' EQUITY	740,411	1,570,365
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	1,185,969	2,050,617
Series A Convertible Preferred Stock [Member]
STOCKHOLDERS' EQUITY
Convertible Preferred Stock		305
STOCKHOLDERS' EQUITY		305
Series B Convertible Preferred Stock [Member]
STOCKHOLDERS' EQUITY
Convertible Preferred Stock
STOCKHOLDERS' EQUITY

Balance Sheets (Unaudited) (Par

Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Accumulated amortization, patent and trademarks	$ 269,929	$ 258,294
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized	675,000,000	675,000,000
Common stock, issued	109,672,373	102,553,706
Common stock, outstanding	109,321,833	102,203,166
Treasury stock, shares	350,540	350,540
Series A Convertible Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized	37,564,767	37,564,767
Preferred stock, issued	0	304,778
Preferred stock, outstanding		304,778
Series B Convertible Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized	85	85
Preferred stock, issued	0.85	0.85
Preferred stock, outstanding	0.85	0.85

Statements of Operations (Unaud

Statements of Operations (Unaudited) - USD ($)		3 Months Ended		6 Months Ended
		Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
NET REVENUE
Sales		$ 40,479	$ 6,799	$ 86,933	$ 6,799
COST OF SALES		7,085	2,000	21,852	2,000
GROSS PROFIT		33,394	4,799	65,081	4,799
OPERATING EXPENSES
General and administrative	[1]	418,195	525,760	650,877	1,021,334
Legal and accounting		68,335	163,770	130,699	297,474
Payroll expenses	[1]	101,786	99,803	206,575	191,854
Research and development		2,608	16,233	6,251	28,429
Sales and marketing	[1]	109,158	25	252,301	8,067
Total Operating expenses		700,082	805,591	1,246,703	1,547,158
LOSS BEFORE OTHER INCOME (EXPENSE)		(666,688)	(800,792)	(1,181,622)	(1,542,359)
OTHER (EXPENSE) INCOME
Interest income (expenses), net		1,032	1,074	2,660	283
Settlement agreement with shareholders					(779,000)
Gain on accounts payable forgiveness			4,523		402,248
TOTAL OTHER INCOME (EXPENSE)		1,032	5,597	2,660	(376,469)
NET LOSS		$ (665,656)	$ (795,195)	$ (1,178,962)	$ (1,918,828)
LOSS PER SHARE
BASIC (in dollars per share)		$ (0.01)	$ (0.01)	$ (0.01)	$ (0.02)
DILUTED (in dollars per share)		$ (0.01)	$ (0.01)	$ (0.01)	$ (0.02)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
BASIC (in shares)		97,520,779	95,910,130	96,434,361	86,488,400
DILUTED (in shares)		97,520,779	95,910,130	96,434,361	86,488,400
[1]	Includes share-based compensation of $259,923 and $349,008 for the three and six months ended June 30, 2019 and $215,810 and $505,713 for the three and six months ended June 30, 2018.

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (1,178,962)	$ (1,918,828)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock based compensation	15,000	44,119
Fair value of options and warrants issued in exchange for services	249,788	226,188
Fair value of restricted stock and restricted stock units issued in exchange for services	84,220	235,406
Gain on accounts payable forgiveness		(402,248)
Share-based payment for settlement agreement with shareholders		279,000
Amortization and depreciation	11,635	10,894
Changes in operating assets and liabilities:
Accounts Receivable	8,349	(5,667)
Deposit on Equipment	(163,090)
Inventory	(1,284)	(11,769)
Prepaid expenses and other current assets	(4,200)
Accounts payable and accrued expenses	(34,694)	(80,398)
Net cash used in operating activities	(1,013,238)	(1,623,303)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Patents	(28,574)	(825)
Capitalized Software Costs	(46,196)
Net cash used in investing activities	(74,770)	(825)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of warrants		2,093,217
Proceeds from sale of common stock		1,154,211
Net cash provided by financing activities		3,247,428
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(1,088,008)	1,623,300
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD	1,673,201	693,001
CASH AND CASH EQUIVALENTS - END OF PERIOD	585,193	2,316,301
Cash paid during the period for:
Interest
Income taxes
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Cashless Exercise of Stock Options		4,028
Cashless Exercise of Warrants	72
Common Stock and Warrants Issued for Common Stock Payable		122,478
Series A Convertible Preferred Stock [Member]
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Convertible Preferred Stock converted to common stock	6,096	400
Series B Convertible Preferred Stock [Member]
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Convertible Preferred Stock converted to common stock		$ 599

Statement of Stockholders' Equi

Statement of Stockholders' Equity (Deficit) (Unaudited) - USD ($)	Series A Convertible Preferred Stock [Member]	Series B Convertible Preferred Stock [Member]	Common Stock [Member]	Additional Paid-In Capital [Member]	Treasury Stock [Member]	Accumulated Deficit [Member]	Total
Balance at beginning at Dec. 31, 2017	$ 325		$ 53,522	$ 56,198,126	$ (113,389)	$ (56,331,088)	$ (192,504)
Balance at beginning (in shares) at Dec. 31, 2017	324,778	0.92	53,523,332
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Conversion of Series A Convertible Preferred Stock	$ (20)		$ 400	(380)
Conversion of Series A Convertible Preferred Stock (in shares)	(20,000)		400,000
Conversion of Series B Convertible Preferred Stock			$ 599	(599)
Conversion of Series B Convertible Preferred Stock (in shares)		(0.07)	599,362
Sale of common stock			$ 16,513	1,137,698			1,154,211
Sale of common stock (in shares)			16,513,311
Settlement Agreement			$ 1,000	278,000			279,000
Settlement Agreement (in shares)			1,000,000
Conversion of notes payable			$ 1,750	120,728			122,478
Conversion of notes payable (in shares)			1,749,683
Exercise of Warrants			$ 20,970	2,072,247			2,093,217
Exercise of Warrants (in shares)			20,969,736
Cashless Exercise of Stock Options			$ 4,028	(4,028)
Cashless Exercise of Stock Options (in shares)			4,027,778
Fair value of stock option				226,188			226,188
Restricted Stock awards and Restricted Stock Units			$ 2,213	233,193			235,405
Restricted Stock awards and Restricted Stock Units (in shares)			2,212,500
Common stock and warrants issued for services			$ 170	43,949			44,119
Common stock and warrants issued for services (in shares)			169,500
Net loss						(1,918,828)	(1,918,828)
Balance at ending at Jun. 30, 2018	$ 305		$ 101,165	60,305,122	(113,389)	(58,249,916)	2,043,287
Balance at ending (in shares) at Jun. 30, 2018	304,778	0.85	101,165,202
Balance at beginning at Mar. 31, 2018	$ 305		$ 92,944	59,481,371	(113,389)	(57,454,721)	2,006,510
Balance at beginning (in shares) at Mar. 31, 2018	304,778	0.85	92,945,925
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of Warrants			$ 6,258	609,904			616,162
Exercise of Warrants (in shares)			6,257,277
Fair value of stock option				20,219			20,219
Restricted Stock awards and Restricted Stock Units			$ 1,913	182,203			184,116
Restricted Stock awards and Restricted Stock Units (in shares)			1,912,500
Common stock and warrants issued for services			$ 50	11,425			11,475
Common stock and warrants issued for services (in shares)			49,500
Net loss						(795,195)	(795,195)
Balance at ending at Jun. 30, 2018	$ 305		$ 101,165	60,305,122	(113,389)	(58,249,916)	2,043,287
Balance at ending (in shares) at Jun. 30, 2018	304,778	0.85	101,165,202
Balance at beginning at Dec. 31, 2018	$ 305		$ 102,203	60,844,796	(113,389)	(59,263,550)	1,570,365
Balance at beginning (in shares) at Dec. 31, 2018	304,778	0.85	102,203,166
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Conversion of Series A Convertible Preferred Stock	$ (305)		$ 6,096	(5,791)
Conversion of Series A Convertible Preferred Stock (in shares)	(304,778)		6,095,569
Fair value of stock option				249,788			249,788
Restricted Stock awards and Restricted Stock Units			$ 880	83,340			84,220
Restricted Stock awards and Restricted Stock Units (in shares)			880,000
Cashless Exercise of Warrants			$ 72	(72)
Cashless Exercise of Warrants (in shares)			71,774
Common stock and warrants issued for services			$ 71	14,929			15,000
Common stock and warrants issued for services (in shares)			71,324
Net loss						(1,178,962)	(1,178,962)
Balance at ending at Jun. 30, 2019			$ 109,322	61,186,990	(113,389)	(60,442,512)	740,411
Balance at ending (in shares) at Jun. 30, 2019		0.85	109,321,833
Balance at beginning at Mar. 31, 2019	$ 265		$ 103,643	60,932,481	(113,389)	(59,776,856)	1,146,144
Balance at beginning (in shares) at Mar. 31, 2019	264,778	0.85	103,643,166
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Conversion of Series A Convertible Preferred Stock	$ (265)		$ 5,296	(5,031)
Conversion of Series A Convertible Preferred Stock (in shares)	(264,778)		5,295,569
Fair value of stock option				126,077			126,077
Restricted Stock awards and Restricted Stock Units			$ 240	118,606			118,846
Restricted Stock awards and Restricted Stock Units (in shares)			240,000
Cashless Exercise of Warrants			$ 72	(72)
Cashless Exercise of Warrants (in shares)			71,774
Common stock and warrants issued for services			$ 71	14,929			15,000
Common stock and warrants issued for services (in shares)			71,324
Net loss						(665,656)	(665,656)
Balance at ending at Jun. 30, 2019			$ 109,322	$ 61,186,990	$ (113,389)	$ (60,442,512)	$ 740,411
Balance at ending (in shares) at Jun. 30, 2019		0.85	109,321,833

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of the Business The Company was incorporated in the State of Nevada on November 10, 1999. The Company is based in Rochester, New York and its common stock, par value $0.001 per share, is traded on the over-the-counter market and quoted on the OTCQB. The Company is a developmental stage technology solutions provider specializing in brand protection functions such as counterfeit prevention, authentication, serialization, track and trace features for labels, packaging and products. We deliver security solutions for identification and authentication of packaging, labels and products in a variety of applications. Leveraging our covert luminescent pigment, RainbowSecure®, which we began commercializing in 2018, we also developed the patent pending VeriPAS™ software system in 2018, which covertly and overtly serializes products to track a products “life cycle” for brand owners. VeriPAS™ is capable of fluorescing, decoding, and verifying invisible RainbowSecure® codes in the field – allowing investigators to quickly and efficiently authenticate product throughout the distribution chain, including warehouses, ports of entry, retail locations, and product purchased over the internet for inspection and investigative actions. This technology is coupled with a secure cloud based track and trace software engine which allows brands and investigators to see where products originate and where they are deployed with geo location mapping and intelligent programmable alerts. Brand owners access the VeriPAS™ software over the internet. Brand owners can then set rules of engagement, establish marketing programs for customer engagement and control, and monitor and protect their products “life cycle.” We have not yet derived any revenue from our VeriPAS™ software system and have derived minimal revenue from the sale of our RainbowSecure® technology. The accompanying unaudited interim financial statements (the “Interim Statements”) have been prepared pursuant to the rules and regulations for reporting on Form 10-Q. Accordingly, certain information and disclosures required by U. S. generally accepted accounting principles (“GAAP”) for complete financial statements are not included herein. The Interim Statements should be read in conjunction with the financial statements and notes thereto included in the Company’s latest Annual Report on Form 10-K for the year ended December 31, 2018 as filed with the Securities and Exchange Commission (the “SEC”) on April 1, 2019. The accompanying Interim Statements are unaudited; however, in the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The interim results for the three and six months ended June 30, 2019 are not necessarily indicative of the results to be expected for the year ending December 31, 2019 or for any future interim periods. The Company’s activities are subject to significant risks and uncertainties, including the need to secure additional funding for working capital and to further develop the Company’s intellectual property. Basis of Presentation The accompanying financial statements are presented in accordance with GAAP. Revenue Recognition The Company accounts for revenues according to ASC Topic 606, “ Revenue from Contracts with Customers” The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: · identify the contract with a customer; · identify the performance obligations in the contract; · determine the transaction price; · allocate the transaction price to performance obligations in the contract; and · recognize revenue as the performance obligation is satisfied. During the three and six months ended June 30, 2019, the Company’s revenues consisted of revenue generated from customer’s printing labels utilizing the Company’s technology. Basic and Diluted Net Income per Share of Common Stock The Company follows FASB ASC 260, “Earnings Per Share,” when reporting earnings per share resulting in the presentation of basic and diluted earnings per share. Because the Company reported a net loss for each of the periods presented, common stock equivalents, including preferred stock, stock options and warrants were anti-dilutive; therefore, the amounts reported for basic and diluted loss per share were the same. For the three and six months ended June 30, 2019 and 2018, there were shares potentially issuable, that could dilute basic earnings per share in the future that were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive to the Company’s losses during the years presented. For the three and six months ended June 30, 2019 there were approximately 48,877,000 anti-dilutive shares consisting of 19,614,000 shares issuable upon exercise of options, 22,041,000 shares issuable upon exercise of warrants and 7,222,000 shares issuable upon conversion of preferred stock. For the three and six months ended June 30, 2018 there were approximately 42,703,000 anti-dilutive shares consisting of 18,014,000 shares relating to options, 11,375,000 shares relating to warrants and 13,314,000 shares relating to preferred share agreements. Going Concern The Company has suffered recurring losses from operations and negative cash flows from operations. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. In order to continue as a going concern, develop a reliable source of revenues, and achieve a profitable level of operations the Company will need, among other things, additional capital resources. Management's plans to continue as a going concern include raising additional capital through increased sales of product and by the sale of common shares. The Company’s business plans are dependent on the ability to raise capital through private placements of our common stock and/or preferred stock, through the possible exercise of outstanding options and warrants, through debt financing and/or through future public offering of our securities. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. The Company’s existing cash resources are sufficient to sustain the Company’s operations through the third quarter of 2019. The Company needs to raise additional funds in the future in order to remain operational past that date. Recently Adopted Accounting Pronouncements Effective January 1, 2019, the Company adopted ASU No. 2018-07, Compensation – Stock Based Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”), which aligns accounting for share-based payments issued to nonemployees to that of employees under the existing guidance of Topic 718, with certain exceptions. This update supersedes previous guidance for equity-based payments to nonemployees under Subtopic 505-50, Equity – Equity-Based Payments to Non-Employees. The adoption of ASU 2018-07 did not have a material impact on the Company’s financial statements.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	6 Months Ended
	Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	NOTE 2 – INTANGIBLE ASSETS Patents and Trademarks The current patent and trademark portfolios consist of 10 granted US patents and 1 granted European patent validated in 4 countries, 4 pending US and foreign patent applications, 4 registered US trademark, and 9 pending US and foreign trademark applications. Costs associated with the registration and legal defense of the patents have been capitalized and are amortized on a straight-line basis over the estimated lives of the patents which were determined to be 17 to 19 years. During the six months ended June 30, 2019 and 2018, the Company capitalized $28,574 and $825 of patent and trademarks costs. Amortization expense for patents and trademarks was $5,928 and $5,860 for the three months ended June 30, 2019 and 2018, and $11,635 and $10,984 for the six months ended June 30, 2019 and 2018, respectively. Capitalized Software Costs incurred in connection with the development of software related to our proprietary digital products are accounted for in accordance with the Financial Accounting Standards Board Accounting Standards Codification ("ASC") 985 “Costs of Software to Be Sold, Leased or Marketed.” Costs incurred prior to the establishment of technological feasibility are charged to research and development expense. Software development costs are capitalized after a product is determined to be technologically feasible and is in the process of being developed for market. Amortization of capitalized software development costs begins once the product is available to the market. Capitalized software development costs are amortized over the estimated life of the related product, generally three years, using the straight-line method. The Company will evaluate its software assets for impairment whenever events or change in circumstances indicate that the carrying amount of such assets may not be recoverable. The Company had Capitalized Software of $116,427 and $70,231 as of June 30, 2019 and December 31, 2018, respectively. The Company has not incurred a depreciation charge as the software was not available for use as of June 30, 2019.

CONVERTIBLE PREFERRED STOCK

CONVERTIBLE PREFERRED STOCK	6 Months Ended
	Jun. 30, 2019
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
CONVERTIBLE PREFERRED STOCK	NOTE 3 – CONVERTIBLE PREFERRED STOCK The Company is authorized to issue Series A Convertible Preferred Stock, par value of $0.001 per share (the “Series A”) and Series B Convertible Preferred Stock, par value of $0.001 per share (the “Series B”). As of June 30, 2019, there were no shares of Series A outstanding and 0.85 of a share of Series B outstanding. Each share of Series A and Series B has limited voting rights, is entitled to participate with the common stock on liquidation and holders of Series A and Series B are subject to beneficial ownership limitations. Series A Convertible Preferred Stock During the six months ended June 30, 2019, 304,778 shares of Series A were converted into 6,095,569 shares of the Company’s common stock. Series B Convertible Preferred Stock During the six months ended June 30, 2018, 0.07 of a share of Series B was converted into 599,362 shares of the Company’s common stock.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2019
Equity [Abstract]
STOCKHOLDERS' EQUITY	NOTE 4 – STOCKHOLDERS’ EQUITY For the three and six months ended June 30, 2019 the Company expensed $0 relative to restricted stock units. For the three and six months ended June 30, 2018 the Company expensed $248 and $8,625 relative to restricted stock units. During the six months ended June 30, 2019, the Company granted a total of 1,200,000 restricted stock awards to five directors of the Company for their services. The restricted stock awards vest in equal quarterly installments over a one-year period. On February 27, 2019 three directors resigned from the Company’s Board of Directors, effective March 1, 2019. This resulted in a cancellation of 320,000 shares related to the portion of the unvested restricted stock awards these directors had received. The Company expensed $118,846 and $84,220 in costs related to restricted stock awards for the three and six months ended June 30, 2019. For the three and six months ended June 30, 2018, the Company expensed $183,866 and $226,781 relative to restricted common stock. During the six months ended June 30, 2019, the Company issued 71,324 shares of restricted common stock for a total expense of $15,000 related to consulting services. During the six months ended June 30, 2018, the Company issued 169,500 shares of restricted common stock for a total expense of $44,119 related to consulting services. During the six months ended June 30, 2018, 37,500 restricted stock units vested in relation to a consulting services agreement and a total of $8,625 was expensed. During the six months ended June 30, 2018, the Company granted a total of 600,000 shares of restricted common stock awards to two directors of the Company, each receiving 300,000 shares of restricted common stock, for joining the Board of Directors. On April 25, 2018, the Company approved the immediate vesting of all of the Company’s outstanding restricted common stock issued in 2017 and 2018 to non-employee directors of the Company. During the three months ended June 30, 2018, the Company granted a total of 1,425,000 shares of restricted common stock to the directors and the Chief Executive Officer of the Company for their services and 150,000 shares to one attorney, that vested quarterly over a one-year period. In 2017, the Company authorized a private placement with a maximum offering amount of $2,100,000 allowing investors to purchase units consisting of 715,000 shares of common stock and 715,000 five-year warrants exercisable at $0.15 per share. In January 2018 the Company’s Board of Directors increased the size of the private placement by an additional amount beyond the $2,100,000 limit. During the six months ended June 30, 2018, the Company raised gross proceeds of $1,154,211 for the purchase of 16,513,311 shares of common stock and 16,513,311 warrants. Of these amounts, gross proceeds of $530,777 for the purchase of 7,590,111 shares of common stock and 7,590,111 warrants related to purchases by directors and relatives of the directors of the Company. In January 2018, the Chairman of the Board of Directors, made a cashless exercise of 5,000,000 options related to services rendered in 2017, resulting in the issuance of 4,027,778 shares of common stock, see Note 5. On January 30, 2018, the Company authorized a 30-day offer, beginning on February 20, 2018, to the holders of the Company’s outstanding warrants exercisable at $0.15 to exercise their warrants at $0.10 per share. This authorization was extended until the latter of 30 days after the receipt of all Investment Letters, as defined below, in connection with the Settlement Shares, as defined below, or June 30, 2018. For the six months ended June 30, 2018, 20,764,860 shares of warrants were exercised and a total of 20,764,860 shares of common stock were issued for gross proceeds of $2,076,486. Included in the above amounts are gross proceeds of $1,205,458 from directors which resulted in 12,054,576 warrants converted into the issuance of 12,054,576 common stock. The offer to exercise $0.15 warrants at $0.10 per share expired on June 30, 2018 and the Company did not extend the offer. In January 2018, a member of the Board exercised 104,876 warrants with an exercise price of $0.15 and a total of 104,876 shares of common stock were issued for gross proceeds of $15,731. On March 31, 2018, the Company entered into a Confidential Settlement Agreement (the “Settlement Agreement”) with Paul Klapper, a member of the Company’s Board at that time, and certain other parties named in the Settlement Agreement. Pursuant to the terms of the Settlement Agreement, the Company (i) paid a total of $500,000 (the “Settlement Amount”) to a fund controlled by Paul Klapper and an additional party, and (ii) issued a total of 1,000,000 shares of the Company’s common stock to the fund and the third party (the “Settlement Shares”). The shares were valued at $279,000 whereby $139,500 related to common stock issued to a related party and $139,500 related to common stock issued to a third party. The Settlement Agreement provides for cancellation as of March 31, 2018 of certain revenue sharing agreements between the Company and each of Mr. Klapper (or an affiliate) and the third party, and terminates the Company’s obligation to issue warrants to purchase 3.7 million shares of the Company’s common stock at an exercise price of $0.40 per share. Mr. Klapper joined the Board of Directors on July 14, 2017 and resigned as of March 31, 2018. In January 2018, the Company issued 1,749,683 shares of common stock and 1,749,683 warrants with an exercise price of $0.15 to Mr. Klapper relating to the Note payable conversion that took place in June 2017. On March 28, 2018, the Company accelerated the vesting of 150,000 shares of restricted common stock owned by Mr. Klapper. In April 2018, the former Chief Executive Officer of the Company exercised his warrants at an exercise price of $0.01 for gross proceeds of $1,000 resulting in an issuance of 100,000 shares.

STOCK OPTIONS, RESTRICTED STOCK

STOCK OPTIONS, RESTRICTED STOCK AND WARRANTS	6 Months Ended
	Jun. 30, 2019
Share-based Payment Arrangement [Abstract]
STOCK OPTIONS, RESTRICTED STOCK AND WARRANTS	NOTE 5 – STOCK OPTIONS, RESTRICTED STOCK AND WARRANTS During 2013, the Company adopted an incentive compensation plan (the “2013 Plan”). Under the 2013 Plan, the Company is authorized to grant awards of stock options, restricted stock, restricted stock units and other stock-based awards of up to an aggregate of 20,000,000 shares of common stock. The 2013 Plan is intended to permit stock options granted to employees under the 2013 Plan to qualify as incentive stock options. All options granted under the 2013 Plan, which are not intended to qualify as incentive stock options are deemed to be non-statutory stock options. The 2013 Plan is no longer used for future grants. On November 14, 2017, the Executive Committee of the Company’s Board of Directors adopted the 2017 Equity Incentive Plan (the “2017 Plan”) which covers the potential issuance of 13,000,000 shares of common stock. The 2017 Plan provides that directors, officers, employees, and consultants of the Company will be eligible to receive equity incentives under the 2017 Plan at the discretion of the Board of Directors or the Compensation Committee of the Board of Directors (the “Compensation Committee”). The Compensation Committee may adopt rules and regulations to carry out the terms of the 2017 Plan. The Plan terminates on November 14, 2027 unless sooner terminated. The 2017 Plan is administered by the Compensation Committee which determines the persons to whom awards will be granted, the number of awards to be granted and the specific terms of each grant, including the vesting thereof, subject to the provisions of the 2017 Plan. In connection with incentive stock options issuable under the 2017 Plan, the exercise price of each option may not be less than 100% of the fair market value of the common stock on the date of the grant (or 110% of the fair market value in the case of a grantee holding more than 10% of the outstanding stock of the Company). Incentive stock options under all plans of the Company shall not exceed $1,000,000 per calendar year. If any employee shall have the right to first exercise any options in excess of $100,000 during any calendar year, the options in excess of $100,000 shall be deemed to be non-statutory stock options, including prices, duration, transferability and limitations on exercise. The Company issued non-statutory stock options pursuant to contractual agreements with non-employees. Options granted under the agreements are expensed when the related service or product is provided. Determining the appropriate fair value of stock-based awards requires the input of subjective assumptions. The Company uses the Black-Scholes option pricing model to value its stock option awards. The assumptions used in calculating the fair value represent management’s best estimates and involve inherent uncertainties and judgments. During the six months ended June 30, 2019 and 2018, the Company expensed $249,788 and $226,188, respectively, with respect to options. The following table presents the weighted-average assumptions used to estimate the fair value of the stock options granted during the six months ended June 30, 2019: Risk Free Interest Rate 2.14 % Expected Volatility 424.69 % Expected Life (in years) 5.0 Dividend Yield 0 % Weighted average estimated fair value of options during the period $ 0.27 Options Outstanding Weighted - Average Aggregate Remaining Intrinsic Weighted- Contractual Value Number of Average Term (in 000’s) Shares Exercise Price (in years) (1) Balance as of December 31, 2018 18,613,529 $ 0.14 Granted 1,000,000 0.20 Balance June 30, 2019 19,613,529 $ 0.14 Exercisable at June 30, 2019 17,230,196 $ 0.13 3.5 $ 937 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s common stock for options that were in-the-money at each respective period. The following table summarizes the activities for the Company’s unvested stock options for the six months ended June 30, 2019: Unvested Options Weighted - Average Number of Unvested Grant Date Options Exercise Price Balance December 31, 2018 2,016,666 $ 0.18 Granted 1,000,000 0.20 Vested (633,333 ) 0.24 Balance June 30, 2019 2,383,333 $ 0.17 During the six months ended June 30, 2019, the Company amended the Consulting Agreement it has with its Chief Operating Officer and granted him options to purchase 1,000,000 shares of common stock with an exercise price of $0.195 that vest annually in equal increments over a two-year period. The following table summarizes the activities for the Company’s warrants for the six months ended June 30, 2019: Warrants Outstanding Number of Weighted- Average Exercise Price Weighted - Average Remaining Contractual Term in years) Aggregate Intrinsic Value (in 000's) (1) Balance, December 31, 2018 22,240,833 $ 0.31 Granted 85,255 0.15 Exercised (200,000 ) 0.15 Balance, June 30, 2019 22,126,088 $ 0.32 Exercisable at June 30, 2019 22,126,088 $ 0.32 3.2 $ 231 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying warrants and the closing stock price of $0.14 for our common stock on June 30, 2019. During the six months ended June 30, 2019, the Company recorded 85,255 warrants related to past issuances. In May 2019, a former director made a cashless exercise of 200,000 warrants, whereby the warrant holder disposed of 128,226 shares of common stock to the Company as part of this exercise, amounting to an issuance of 71,774 shares of common stock.

CONCENTRATIONS

CONCENTRATIONS	6 Months Ended
	Jun. 30, 2019
Risks and Uncertainties [Abstract]
CONCENTRATIONS	NOTE 6 – CONCENTRATIONS Revenue For the three and six months ended June 30, 2019, three customers represented 100% of revenues. Accounts Receivable As of June 30, 2019, two customers represented 100% of accounts receivable.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2019
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 7 – SUBSEQUENT EVENTS In July 2019, the Company granted 33,333 shares of restricted common stock in relation to investor relation services. In August 2019, the Company granted 200,000 shares of restricted common stock in relation to consulting services. In August 2019, the Company granted 400,000 shares of restricted common stock in relation to consulting services. In August 2019, the Company entered into an amendment (the “Amendment”) to the Employment Agreement, dated August 15, 2017, with Patrick White, the Chief Executive Officer of the Company (the “Employment Agreement”), which Employment Agreement automatically renewed on July 16, 2019, effective on August 15, 2019. Pursuant to the Amendment, the term was reduced to one year and Mr. White agreed to defer receipt of sums due him to improve the Company’s liquidity. Mr. White was due to receive $100,000 on August 15, 2019 representing deferred salary (the “Deferral Amount”) that he had previously agreed to defer over the two years of the initial term of his Employment Agreement. In the Amendment, Mr. White agreed to extend receipt of the Deferral Amount until August 15, 2020. In addition, he agreed to continue deferring 25% of his base salary over the one-year term until August 15, 2020. In connection with entering into the Amendment, the Company granted Mr. White 500,000 five-year fully vested incentive stock options under the Company’s 2017 Equity Incentive Plan exercisable at $0.14 per share.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Nature of the Business	Nature of the Business The Company was incorporated in the State of Nevada on November 10, 1999. The Company is based in Rochester, New York and its common stock, par value $0.001 per share, is traded on the over-the-counter market and quoted on the OTCQB. The Company is a developmental stage technology solutions provider specializing in brand protection functions such as counterfeit prevention, authentication, serialization, track and trace features for labels, packaging and products. We deliver security solutions for identification and authentication of packaging, labels and products in a variety of applications. Leveraging our covert luminescent pigment, RainbowSecure®, which we began commercializing in 2018, we also developed the patent pending VeriPAS™ software system in 2018, which covertly and overtly serializes products to track a products “life cycle” for brand owners. VeriPAS™ is capable of fluorescing, decoding, and verifying invisible RainbowSecure® codes in the field – allowing investigators to quickly and efficiently authenticate product throughout the distribution chain, including warehouses, ports of entry, retail locations, and product purchased over the internet for inspection and investigative actions. This technology is coupled with a secure cloud based track and trace software engine which allows brands and investigators to see where products originate and where they are deployed with geo location mapping and intelligent programmable alerts. Brand owners access the VeriPAS™ software over the internet. Brand owners can then set rules of engagement, establish marketing programs for customer engagement and control, and monitor and protect their products “life cycle.” We have not yet derived any revenue from our VeriPAS™ software system and have derived minimal revenue from the sale of our RainbowSecure® technology. The accompanying unaudited interim financial statements (the “Interim Statements”) have been prepared pursuant to the rules and regulations for reporting on Form 10-Q. Accordingly, certain information and disclosures required by U. S. generally accepted accounting principles (“GAAP”) for complete financial statements are not included herein. The Interim Statements should be read in conjunction with the financial statements and notes thereto included in the Company’s latest Annual Report on Form 10-K for the year ended December 31, 2018 as filed with the Securities and Exchange Commission (the “SEC”) on April 1, 2019. The accompanying Interim Statements are unaudited; however, in the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The interim results for the three and six months ended June 30, 2019 are not necessarily indicative of the results to be expected for the year ending December 31, 2019 or for any future interim periods. The Company’s activities are subject to significant risks and uncertainties, including the need to secure additional funding for working capital and to further develop the Company’s intellectual property.
Basis of Presentation	Basis of Presentation The accompanying financial statements are presented in accordance with GAAP.
Revenue Recognition	Revenue Recognition The Company accounts for revenues according to ASC Topic 606, “ Revenue from Contracts with Customers” The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: · identify the contract with a customer; · identify the performance obligations in the contract; · determine the transaction price; · allocate the transaction price to performance obligations in the contract; and · recognize revenue as the performance obligation is satisfied. During the three and six months ended June 30, 2019, the Company’s revenues consisted of revenue generated from customer’s printing labels utilizing the Company’s technology.
Basic and Diluted Net Income per Share of Common Stock	Basic and Diluted Net Income per Share of Common Stock The Company follows FASB ASC 260, “Earnings Per Share,” when reporting earnings per share resulting in the presentation of basic and diluted earnings per share. Because the Company reported a net loss for each of the periods presented, common stock equivalents, including preferred stock, stock options and warrants were anti-dilutive; therefore, the amounts reported for basic and diluted loss per share were the same. For the three and six months ended June 30, 2019 and 2018, there were shares potentially issuable, that could dilute basic earnings per share in the future that were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive to the Company’s losses during the years presented. For the three and six months ended June 30, 2019 there were approximately 48,877,000 anti-dilutive shares consisting of 19,614,000 shares issuable upon exercise of options, 22,041,000 shares issuable upon exercise of warrants and 7,222,000 shares issuable upon conversion of preferred stock. For the three and six months ended June 30, 2018 there were approximately 42,703,000 anti-dilutive shares consisting of 18,014,000 shares relating to options, 11,375,000 shares relating to warrants and 13,314,000 shares relating to preferred share agreements.
Going Concern	Going Concern The Company has suffered recurring losses from operations and negative cash flows from operations. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. In order to continue as a going concern, develop a reliable source of revenues, and achieve a profitable level of operations the Company will need, among other things, additional capital resources. Management's plans to continue as a going concern include raising additional capital through increased sales of product and by the sale of common shares. The Company’s business plans are dependent on the ability to raise capital through private placements of our common stock and/or preferred stock, through the possible exercise of outstanding options and warrants, through debt financing and/or through future public offering of our securities. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. The Company’s existing cash resources are sufficient to sustain the Company’s operations through the third quarter of 2019. The Company needs to raise additional funds in the future in order to remain operational past that date.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements Effective January 1, 2019, the Company adopted ASU No. 2018-07, Compensation – Stock Based Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”), which aligns accounting for share-based payments issued to nonemployees to that of employees under the existing guidance of Topic 718, with certain exceptions. This update supersedes previous guidance for equity-based payments to nonemployees under Subtopic 505-50, Equity – Equity-Based Payments to Non-Employees. The adoption of ASU 2018-07 did not have a material impact on the Company’s financial statements.

STOCK OPTIONS, RESTRICTED STO_2

STOCK OPTIONS, RESTRICTED STOCK AND WARRANTS (Tables)	6 Months Ended
	Jun. 30, 2019
Share-based Payment Arrangement [Abstract]
Schedule of weighted-average assumptions to estimate the fair values of stock options granted	The following table presents the weighted-average assumptions used to estimate the fair value of the stock options granted during the six months ended June 30, 2019: Risk Free Interest Rate 2.14 % Expected Volatility 424.69 % Expected Life (in years) 5.0 Dividend Yield 0 % Weighted average estimated fair value of options during the period $ 0.27
Schedule of stock option activity	Options Outstanding Weighted - Average Aggregate Remaining Intrinsic Weighted- Contractual Value Number of Average Term (in 000’s) Shares Exercise Price (in years) (1) Balance as of December 31, 2018 18,613,529 $ 0.14 Granted 1,000,000 0.20 Balance June 30, 2019 19,613,529 $ 0.14 Exercisable at June 30, 2019 17,230,196 $ 0.13 3.5 $ 937 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s common stock for options that were in-the-money at each respective period.
Schedule of summary for the activities of unvested stock options	The following table summarizes the activities for the Company’s unvested stock options for the six months ended June 30, 2019: Unvested Options Weighted - Average Number of Unvested Grant Date Options Exercise Price Balance December 31, 2018 2,016,666 $ 0.18 Granted 1,000,000 0.20 Vested (633,333 ) 0.24 Balance June 30, 2019 2,383,333 $ 0.17
Schedule of warrant activity	The following table summarizes the activities for the Company’s warrants for the six months ended June 30, 2019: Warrants Outstanding Number of Weighted- Average Exercise Price Weighted - Average Remaining Contractual Term in years) Aggregate Intrinsic Value (in 000's) (1) Balance, December 31, 2018 22,240,833 $ 0.31 Granted 85,255 0.15 Exercised (200,000 ) 0.15 Balance, June 30, 2019 22,126,088 $ 0.32 Exercisable at June 30, 2019 22,126,088 $ 0.32 3.2 $ 231 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying warrants and the closing stock price of $0.14 for our common stock on June 30, 2019.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common stock, par value	$ 0.001		$ 0.001		$ 0.001
Anti-dilutive common stock equivalents, excluded from the calculation of earnings per share	48,877,000	42,703,000	48,877,000	42,703,000
Preferred Share Agreements [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive common stock equivalents, excluded from the calculation of earnings per share	7,222,000	13,314,000	7,222,000	13,314,000
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive common stock equivalents, excluded from the calculation of earnings per share	22,041,000	11,375,000	22,041,000	11,375,000
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive common stock equivalents, excluded from the calculation of earnings per share	19,614,000	18,014,000	19,614,000	18,014,000

INTANGIBLE ASSETS (Details Narr

INTANGIBLE ASSETS (Details Narrative)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019USD ($)Number	Jun. 30, 2018USD ($)	Jun. 30, 2019USD ($)Number	Jun. 30, 2018USD ($)	Dec. 31, 2018USD ($)
Finite-Lived Intangible Assets [Line Items]
Capitalized Software Costs | $			$ 116,427		$ 70,231
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Number of patents granted	10		10
Number of pending patents	4		4
Number of trademarks	4		4
Number of pending trademarks	9		9
Amortization method			Straight-line basis
Patents [Member] | Europe [Member]
Finite-Lived Intangible Assets [Line Items]
Number of patents granted	1		1
Patents [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated lives of intangible assets			19 years
Patents [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated lives of intangible assets			17 years
Trademarks [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization method			Straight-line basis
Patents And Trademark [Member]
Finite-Lived Intangible Assets [Line Items]
Capitalized patent costs and trademarks | $			$ 28,574	$ 825
Amortization expense | $	$ 5,928	$ 5,860	$ 11,635	$ 10,984

CONVERTIBLE PREFERRED STOCK (De

CONVERTIBLE PREFERRED STOCK (Details Narrative) - $ / shares	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Preferred stock, voting rights		Each share of Series A and Series B has limited voting rights, is entitled to participate with the common stock on liquidation and holders of Series A and Series B are subject to beneficial ownership limitations.
Series A Convertible Preferred Stock [Member]
Convertible preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001		$ 0.001
Convertible preferred stock, outstanding (in shares)				304,778
Conversion of stock, shares converted (in shares)	264,778	304,778	20,000
Conversion of stock, shares converted (in shares)
Conversion of shares of preferred stock to common stock (in shares)		6,095,569	400,000
Series B Convertible Preferred Stock [Member]
Convertible preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001		$ 0.001
Convertible preferred stock, outstanding (in shares)	0.85	0.85		0.85
Conversion of stock, shares converted (in shares)
Conversion of stock, shares converted (in shares)			0.07
Conversion of shares of preferred stock to common stock (in shares)			599,362

STOCKHOLDERS' EQUITY (Details N

STOCKHOLDERS' EQUITY (Details Narrative) - USD ($)	Feb. 27, 2019	Mar. 31, 2018	Apr. 30, 2018	Jan. 31, 2018	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2017	Dec. 31, 2018	Mar. 28, 2018	Jan. 30, 2018
Warrants Issued						$ 1,154,211		$ 1,154,211
Warrant Exercise price												$ 0.15
Shares issued during period value								1,154,211
Proceeds from issuance of convertible stock								$ 2,093,217
Common stock issued					109,672,373		109,672,373			102,553,706
Share-based payment for settlement agreement with shareholders		$ 279,000
Third Party [Member]
Share-based payment for settlement agreement with shareholders		139,500
Related Party [Member]
Share-based payment for settlement agreement with shareholders		$ 139,500
Private Placement [Member]
Proceeds From Issuance of Private Placement									$ 2,100,000
Warrant term									5 years
Common Stock [Member]
Restricted stock awards granted					240,000	1,912,500	880,000	2,212,500
Common stock sold									715,000
Shares issued during period value								$ 16,513
Shares issued during period								16,513,311
Restricted Stock Units (RSUs) [Member]
Restricted stock/Restricted stock units, Expense					$ 0	$ 248	$ 0	$ 8,625
Restricted Stock [Member]
Option vesting											150,000
Warrant [Member]
Warrant term									5 years
Warrants Issued						16,513,311		16,513,311	$ 715,000
Warrant Exercise price									$ 0.15			$ 0.10
Employee Stock Option [Member] | Chief Executive Officer (Patrick White) [Member] | Warrant [Member]
Warrant Exercise price			$ 0.01
Shares issued during period value			$ 1,000
Shares issued during period			100,000
Consulting Service Agreement [Member] | Restricted Stock Units (RSUs) [Member]
Restricted stock/Restricted stock units, Expense							$ 15,000	$ 44,119
Restricted stock units issued							71,324	169,500
Restricted stock vested, shares								37,500
Restricted stock vested, amount								8,625
Consulting Service Agreement [Member] | Restricted Stock [Member]
Restricted stock/Restricted stock units, Expense					$ 118,846	$ 183,866	$ 84,220	$ 226,781
Five Director [Member] | Restricted Stock [Member]
Restricted stock awards granted							1,200,000
Restricted stock awards granted term							1 year
Three Director [Member] | Restricted Stock [Member]
Number of share cancelled	320,000
Two Director [Member] | Restricted Stock [Member]
Restricted stock awards granted								600,000
Board of Director [Member]
Issuance of shares cashless exercise of options related to services				4,027,778
Proceeds from issuance of convertible stock								$ 2,076,486
Board of Director [Member] | Private Placement [Member]
Proceeds From Issuance of Private Placement				$ 2,100,000				$ 530,777
Board of Director [Member] | Common Stock [Member]
Restricted stock awards granted								300,000
Common stock sold								20,764,860
Proceeds from issuance of convertible stock								$ 12,054,576
Shares issued to convert accounts payable				1,749,683
Board of Director [Member] | Common Stock [Member] | Common stock and warrant [Member]
Common stock sold								7,590,111
Board of Director [Member] | Settlement Agreement [Member]
Warrant Exercise price		$ 0.40
Common stock issued		1,000,000
Amount of Settlement paid		$ 500,000
Number of common stock called by warrants (in shares)		3,700,000
Board of Director [Member] | Warrant [Member]
Common stock sold								20,764,860
Warrant Exercise price				$ 0.15
Proceeds from issuance of convertible stock								$ 1,205,458
Shares issued to convert accounts payable				1,749,683
Board of Director [Member] | Warrant [Member] | Common stock and warrant [Member]
Common stock sold								7,590,111
Board of Director [Member] | Employee Stock Option [Member]
Issuance of shares cashless exercise of options related to services				5,000,000
Director and Chief Executive Officer [Member] | Restricted Stock [Member]
Restricted stock vested, shares						150,000
Restricted stock awards granted						1,425,000
Restricted stock awards granted term						1 year
Member of Board [Member] | Warrant [Member]
Shares issued during period value				$ 15,731
Shares issued during period				104,876

STOCK OPTIONS, RESTRICTED STO_3

STOCK OPTIONS, RESTRICTED STOCK AND WARRANTS (Details)	6 Months Ended
	Jun. 30, 2019$ / shares
Share-based Payment Arrangement [Abstract]
Risk Free Interest Rate	2.14%
Expected Volatility	424.69%
Expected Life (in years)	5 years
Dividend Yield	0.00%
Weighted average estimated fair value of options during the period	$ 0.27

STOCK OPTIONS, RESTRICTED STO_4

STOCK OPTIONS, RESTRICTED STOCK AND WARRANTS (Details 1) - Employee Stock Option [Member]	6 Months Ended
	Jun. 30, 2019USD ($)$ / sharesshares
Number of Shares
Balance, beginning | shares	18,613,529
Granted | shares	1,000,000
Balance, ending | shares	19,613,529
Exercisable | shares	17,230,196
Weighted Average Exercise Price
Balance, beginning | $ / shares	$ 0.14
Granted | $ / shares	0.20
Balance, ending | $ / shares	0.14
Exercisable | $ / shares	$ 0.13
Weighted Average Remaining Contractual Term
Exercisable	3 years 6 months
Aggregate Intrinsic Value
Exercisable | $	$ 937,000	[1]
[1]	The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company's common stock for options that were in-the-money at each respective period.

STOCK OPTIONS, RESTRICTED STO_5

STOCK OPTIONS, RESTRICTED STOCK AND WARRANTS (Details 2) - Nonvested Stock Options [Member]	6 Months Ended
	Jun. 30, 2019$ / sharesshares
Number of Unvested Options
Balance, Beginning | shares	2,016,666
Granted | shares	1,000,000
Vested | shares	(633,333)
Balance, Ending | shares	2,383,333
Weighted-Average Grant Date Exercise Price
Balance, Beginning | $ / shares	$ 0.18
Granted | $ / shares	0.20
Vested | $ / shares	0.24
Balance, Ending | $ / shares	$ 0.17

STOCK OPTIONS, RESTRICTED STO_6

STOCK OPTIONS, RESTRICTED STOCK AND WARRANTS (Details 3)	6 Months Ended
	Jun. 30, 2019USD ($)$ / sharesshares
Number of Shares
Balance, beginning | shares	22,240,833
Granted | shares	85,255
Exercised | shares	(200,000)
Balance, ending | shares	22,126,088
Exercisable | shares	22,126,088
Weighted Average Exercise Price
Balance, beginning	$ 0.31
Granted	0.15
Exercised	0.15
Balance, ending	0.32
Exercisable	$ 0.32
Weighted - Average Remaining Contractual Term
Exercisable	3 years 2 months 12 days
Aggregate Intrinsic Value:
Exercisable | $	$ 231,000
Closing stock price	$ 0.14

STOCK OPTIONS, RESTRICTED STO_7

STOCK OPTIONS, RESTRICTED STOCK AND WARRANTS (Details Narrative) - USD ($)	Nov. 14, 2017	May 31, 2019	Jun. 30, 2019	Jun. 30, 2019	Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option, expense				$ 249,788	$ 226,188
Number of warrant recorded			85,255	85,255
Equity Incentive Plan 2017 [Member] | Board of Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued during period	13,000,000
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price, description				In connection with Incentive Stock Options issuable under the 2017 Plan, the exercise price of each option may not be less than 100% of the fair market value of the common stock on the date of the grant (or 110% of the fair market value in the case of a grantee holding more than 10% of the outstanding stock of the Company).Incentive Stock Options under all plans of the Company shall not exceed $1,000,000 per calendar year. If any employee shall have the right to first exercise any options in excess of $100,000 during any calendar year, the options in excess of $100,000 shall be deemed to be Non-Statutory Stock Options, including prices, duration, transferability and limitations on exercise.
Granted				1,000,000
Stock Options, Restricted Stock and Units, and Other Stock-based Awards [Member] | Stock Option 2013 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized to be granted under plan			20,000,000	20,000,000
Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued during period					16,513,311
Cashless exercise of warrants (in shares)			71,774	71,774
Former Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued during period		71,774
Cashless exercise of warrants (in shares)		200,000
Former Director [Member] | Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cashless exercise of warrants (in shares)		128,226
Chief Operating Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted				1,000,000
Exercise price of unvested options (in dollars per share)				$ 0.195
Term of unvested options				2 years

CONCENTRATIONS (Details Narrati

CONCENTRATIONS (Details Narrative)	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Customer Concentration Risk Three [Member] | Revenues [Member]
Concentration risk, percentage	100.00%	100.00%
Customer Concentration Risk Two [Member] | Accounts Receivable [Member]
Concentration risk, percentage	100.00%	100.00%

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member] - USD ($)	Aug. 31, 2019	Aug. 31, 2019	Aug. 15, 2019	Jul. 31, 2019
Chief Executive Officer (Patrick White) [Member] | Employment Agreement [Member]
Subsequent Event [Line Items]
Agreement term	1 year		2 years
Deferral amount			$ 100,000
Description of deferral amount			In the Amendment, Mr. White agreed to extend receipt of the Deferral Amount until August 15, 2020. In addition, he agreed to continue deferring 25% of his base salary over the one-year term until August 15, 2020.
Chief Executive Officer (Patrick White) [Member] | Employment Agreement [Member] | Equity Incentive Plan 2017 [Member]
Subsequent Event [Line Items]
Granted vested options			500,000
Vesting period			5 years
Exercisable			$ 0.14
Restricted Stock [Member] | Consulting Service [Member]
Subsequent Event [Line Items]
Restricted stock awards granted	400,000	200,000
Restricted Stock [Member] | Investor Relation Services [Member]
Subsequent Event [Line Items]
Restricted stock awards granted				33,333